Bill > SF2879

This bill modifies several provisions of Minnesota's small business investment credit program, primarily extending and expanding the existing tax credit framework. The key changes include increasing the maximum previous private equity investment limit for qualifying businesses from $4 million to $15 million, extending the credit allocation program through taxable years beginning after December 31, 2024, and increasing the total annual credit allocation from $5 million to $10 million. The bill also lengthens the required investment holding period from three to five years, which means investors must maintain their investment in a qualified small business for five years to keep the full tax credit, with some exceptions for situations like business sale, asset liquidation, or investor death. Additionally, the bill maintains the existing requirements for businesses to qualify, such as having headquarters in Minnesota, employing at least 51% of workers in the state, being innovative in high-technology or specific industry fields, and having fewer than 25 employees. The commissioner of the state department will continue to manage the program, certify eligible businesses, allocate credits, and provide annual reports to the legislature about the program's performance and impact.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2879&ssn=0&y=2025